Apple Production Cut Confirmed
UBS analyst Maynard Um corroborated claims from earlier this week that Apple would be cutting their production. Friedman Billings Ramsey analyst Craig Berger stated that Apple would be cutting their iPhone 3G production by a 40%. Now Um has found evidence in the supply chain that iPhone levels are down by 1.7 million to 2.3 million.
Nonetheless, the analyst noted that the company’s selling, general and administrative (SG&A) expenses were similar to their rivals, which is impressive given the tendency of Palm and RIM to experience high expenses in the early stages of a product.
GAAP revenue and EPS estimates for FY09 remain unchanged, coming to $36.7 billion and $5.13, respectively.
Um says that they’re keeping to their previous estimates.